The knowledge-based products and economic complexity in developing countries
Economic growth and development requires greater access to global markets, while developing countries face many challenges in terms of trade liberalization. That is why most of the countries relying on natural income sources have not been able to improve their indicators of economic complexity and h...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2019-12-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844019366381 |
| _version_ | 1818791612659007488 |
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| author | Hamid Sepehrdoust Razieh Davarikish Maryam Setarehie |
| author_facet | Hamid Sepehrdoust Razieh Davarikish Maryam Setarehie |
| author_sort | Hamid Sepehrdoust |
| collection | DOAJ |
| description | Economic growth and development requires greater access to global markets, while developing countries face many challenges in terms of trade liberalization. That is why most of the countries relying on natural income sources have not been able to improve their indicators of economic complexity and high technology utilization. The purpose of this study was to investigate the impact of trade liberalization on the economic complexity as a strategy adopted by the Middle East developing economies during the period 2002–2017; using the panel vector auto regression model (PVAR). Immediate reaction test results show that, over a period of 10 years, economic complexity increases with positive shock from variables of trade freedom, foreign direct investment and gross fixed capital formation, but in the long run, the effect of imports of intermediate and capital goods is initially increasing and, after a short period, has a positive downward effect. In general, the results of this study recommend that; in order to achieve a proper share of export revenues in economic growth, the Middle East countries need to strengthen the foreign trade economy through trade liberalization and experience the impact of imports of medium and final capital goods, gross capital formation, and foreign direct investment in the index of economic complexity. |
| first_indexed | 2024-12-18T15:14:07Z |
| format | Article |
| id | doaj.art-71e121a666cf48e8a0a0ef6da12fb2cf |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-12-18T15:14:07Z |
| publishDate | 2019-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-71e121a666cf48e8a0a0ef6da12fb2cf2022-12-21T21:03:34ZengElsevierHeliyon2405-84402019-12-01512e02979The knowledge-based products and economic complexity in developing countriesHamid Sepehrdoust0Razieh Davarikish1Maryam Setarehie2Department of Economics, Bu-Ali-Sina University, Hamedan, Iran; Corresponding author.Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamadan, IranFaculty of Economics and Social Sciences, Bu-Ali Sina University, Hamadan, IranEconomic growth and development requires greater access to global markets, while developing countries face many challenges in terms of trade liberalization. That is why most of the countries relying on natural income sources have not been able to improve their indicators of economic complexity and high technology utilization. The purpose of this study was to investigate the impact of trade liberalization on the economic complexity as a strategy adopted by the Middle East developing economies during the period 2002–2017; using the panel vector auto regression model (PVAR). Immediate reaction test results show that, over a period of 10 years, economic complexity increases with positive shock from variables of trade freedom, foreign direct investment and gross fixed capital formation, but in the long run, the effect of imports of intermediate and capital goods is initially increasing and, after a short period, has a positive downward effect. In general, the results of this study recommend that; in order to achieve a proper share of export revenues in economic growth, the Middle East countries need to strengthen the foreign trade economy through trade liberalization and experience the impact of imports of medium and final capital goods, gross capital formation, and foreign direct investment in the index of economic complexity.http://www.sciencedirect.com/science/article/pii/S2405844019366381TechnologyLiberalizationComplexityDevelopingMiddle EastEconomic development |
| spellingShingle | Hamid Sepehrdoust Razieh Davarikish Maryam Setarehie The knowledge-based products and economic complexity in developing countries Heliyon Technology Liberalization Complexity Developing Middle East Economic development |
| title | The knowledge-based products and economic complexity in developing countries |
| title_full | The knowledge-based products and economic complexity in developing countries |
| title_fullStr | The knowledge-based products and economic complexity in developing countries |
| title_full_unstemmed | The knowledge-based products and economic complexity in developing countries |
| title_short | The knowledge-based products and economic complexity in developing countries |
| title_sort | knowledge based products and economic complexity in developing countries |
| topic | Technology Liberalization Complexity Developing Middle East Economic development |
| url | http://www.sciencedirect.com/science/article/pii/S2405844019366381 |
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